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Oman: gas price hikes affect production costs for cement producers

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World Cement,

In Oman, the Ministry of Oil and Gas has announced a planned increase to gas prices starting 1 January 2015. The price hike will affect the operational costs of both Raysut Cement and Oman Cement.

In response to the announced price increase, Raysut Cement said that it would try to offset the rise in costs by making reductions elsewhere, improving efficiency and restructuring its own prices. Oman Cement is expecting its own production costs to go up by US$5.45 million. The gas price has been doubled to 41 baisas per standard cubic metre in a bid to counter the impact of lower oil prices on Oman’s economy.

Raysut Cement reported an 18% increase in net profit for the quarter ended 30 September, while Oman Cement recorded a drop of almost 40% in the same period.

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